The blockchain, that behemoth of modern innovation and advancement in technology, has had such an impact on our lives today, even if we do not fully comprehend it, that to speak of anything could lead to a discussion on its effects on the global village of today. Of all fields, it has an exceptional influence on the world of finance, e-commerce and trade, and collectively, it has shifted the paradigms of bankers and economists in the twenty-first century.
What is it about this Goliath of technology that so easily and effectively exerts its pressure on something as established as banking? Banks have been around for hundreds of years; they have survived countless wars and revolutions; they have caused quite a few themselves. How can a mere concept, an ideology (just shy of a decade old), so easily usurp the position occupied by them for centuries?
Well the answer is simple, but needs explanation, and just below are a few reasons why the monopoly of banks is threatened by the introduction of the blockchain.
What the Blockchain Brings to the Table
The blockchain is a system that brings total and complete privacy, security and efficiency to every user simultaneously. While banks have a traditional total control of how money is transferred and stored in our lives, the blockchain is offering better alternatives with incentives that no bank can match.
In particular, there are three main facets of blockchain-run e-commerce that make it such a lucrative and imperative addition to finance. These can be defined as follows:
- The blockchain allows for instant, peer-to-peer transactions at a much more user-friendly cost. What this means is that the blockchain provides services at a personal level, while maintaining secrecy and privacy, yet cutting the middleman out of the picture.
For example, if you were to use the blockchain to hire a taxi, the service would be carried out like this: first, you would be given a list of available taxis nearby, each with their own personal ratings given by users, and from this list you could choose accordingly. Then, once the trip is over, the blockchain would generate a bill, with remarkably lower prices than with contemporary services, because the ‘middleman’ like Uber wouldn’t be around to charge their share. The service would be much more user friendly, because it’s all based on user reviews. While it may seem to be no different from the existing fee structure of services like Uber and Lyft, the truth is a little different. If you would like to learn more about it check out this article.
- The blockchain is quicker than banks when transferring currency and assets. For a simple overseas transfer, for example a remittance, the minimum time could range from one to three day(s) when carried out by banks. We accept such delay as banal and necessary, but the blockchain means that this doesn’t have to happen; a typical transaction on the blockchain can be as quick as just a few hours at most.
- The blockchain is an unbelievably secure system. It would take a whole other article to explain just how secure it is and why, so suffice it to say that you can forget about anyone stealing your funds or assets. If you don’t want to take my word for it, learn more about the blockchain and how it works here.
How Does This Affect Banking?
Well, the blockchain is less of a tool than a whole new infrastructure to replace the currently existing system. You see, the blockchain is frequently thought to be only compatible with cryptocurrency; in truth it is the only existing format for fund transportation that is compatible with both fiat and crypto currencies.
- The point I’m trying to make here is that the blockchain is doing the job of banks better and as such it is applying a pressure on modern financial institutions worldwide to improve. This pressure is merely the pressure of competition. How it is exerted is by doing a better job than banks in virtually every test.
Imagine a world where the blockchain was the pre-eminent mode of banking. In such a world, the need for these commercial giants like the banks of today would be nullified and replaced with a better, faster and cheaper system, the blockchain. You would be imagining a world where ‘service charges’ would mean a mere ‘two percent’ instead of the ten percent that banks charge us so unabashedly; you would be a world where global businesses could move funds in a matter of hours; where the reliance on any one central institution would be eliminated.
- This brings us to the best nuance of banking under the blockchain; the whole system is not American, it is not Japanese, British or Nigerian. It is universal. The Bitcoin blockchain is public property, belonging to me as much as it does to you, and this means that the blockchain must not adhere to any one country’s laws, that may conflict with another. This means that you can trust that the blockchain may be the first industry to actually be in everyone’s favour.
While it is not really possible to be sure when guessing the attitude of banks towards the blockchain in upcoming years, it can be said without doubt that they must adapt to the increasing competition imposed by the blockchain in every facet of banking. And as no other alternative to the blockchain currently exists that is on-par or even close to the high level of sophistication possessed by the former, it can safely be said that banks must learn to use the blockchain or be a stepping stone in its path to glory.
So, make sure that the banks we like to trust so blindly today aren’t using you and make the smart move today. Make sure to ride the blockchain revolution, in banking, in commerce and in every field, and be a part of its motion. You can do that by buying bitcoin with a credit card and utilising the power of the blockchain today. Log in here to pre-order your Amon card and make money management simpler.